RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of April 21, 2021 No. PP-5083

About additional measures for active investment attraction to the sphere of geology, transformation of the companies of industry and to expansion of mineral resources of the republic

For the purpose of implementation of effective management system at the companies of geological industry by their transformation on the basis of the best international practices, decrease in cost of the exploration works directed to opening of new mineral deposits, increases in flow of direct foreign investments at industrial development of fields, radical reforming of activities of the State committee on geology and mineral resources (further - Goskomgeologiya), and also the organizations of modern production capacities and creation of new workplaces in regions:

1. Agree with the offer of the Ministry of Finance and Goskomgeologiya on creation in system of geology of JSC Uzbekgeologorazvedka (further - Joint-stock company) on servicing of exploration works within state programs of development and reproduction of mineral resources of the republic (further - state programs) with the status of the independent legal entity by consolidation of JSC Kizilkumgeologiya, JSC Samarkandgeologiya, JSC Surkhongeologiya, JSC Hisorgeologiya, JSC Toshkentgeologiya, SUE Central Laboratory and SUE Geoburtekhnika.

2. Take into consideration that are determined by the main objectives of Joint-stock company:

implementation of measures for upgrade of the sphere of geology due to implementation to this sphere of the modern and highly effective equipment, advanced equipment and innovative technologies;

carrying out the system work directed to decrease in cost of services by increase in efficiency and effectiveness of exploration works and expense optimization;

increase in operating efficiency of activities by implementation of modern corporate management system, rational use material, financial and manpower;

providing competitiveness of the works which are carried out to industries due to use of modern digital technologies, and also conducting exploration works not only in the territory of the republic, but also in the foreign states as the winner of the international tenders;

ensuring development of mineral resources of the republic by the accelerated realization of exploration works in regions.

Determine that in 2025 investors by means of public primary and secondary share placing with assistance of the international financial institutions and the consulting organizations will be attracted with Joint-stock company.

3. To the Ministry of Finance and Goskomgeologiya after creation of Joint-stock company:

in a month - to provide creation as a part of Joint-stock company of the Project office which is carrying out tasks on realization of processes of transformation, implementation of modern corporate management systems and international standards, and also coordination of financial and economic activities of society;

in a month - to staff at least 30 percent of structure of the Supervisory board of Joint-stock company by the qualified specialists of industry having foreign work experience;

- to enter position of the deputy manager into three-months time - the finance director (CFO) of Joint-stock company, to provide attraction to this position of the highly skilled international expert having work experience in similar projects.

4. Approve:

"Road map" on reforming of the companies performing activities in Goskomgeologiya's system, to increase in investment appeal and widespread introduction of digitalization to this sphere according to appendix No. 1;

new organizational structure of Goskomgeologiya according to appendix No. 2;

the main directions of the exploration works which are carried out on prospective areas and structures for identification of new mineral deposits in 2021-2022 according to appendix No. 3;

the main indicators of increase in inventories of minerals for development and reproduction of mineral resources of the republic in 2021-2022 according to appendix No. 4;

the main indicators of increase in inventories of minerals due to revaluation by joint-stock company "Almalyk MMC" the integrated fields Kalmakir and Yoshlik-I in 2021-2022 according to appendix No. 5.

5. Determine that:

the funds within state programs allocated Goskomgeologiya for the exploration works which are carried out by its order on the basis of agreements are not capitalized in authorized capitals of the organizations of the sphere of geology;

the new areas and structures revealed as a result of exploration works and also the found new mineral deposits are investment objects in which Goskomgeologiya potential investors according to the procedure are attracted, established by the legislation;

since 2022 annually till February 1 needs representation by subsoil users in Goskomgeologiya the relevant information on results of exploration works and increase in inventories of the minerals reached last year and the planned amount the current year;

works on prospecting drilling on 15 prospective oil and gas areas prepared Goskomgeologiya within the State program for 2020 and which are subject to accomplishment in 2021 are carried out at the expense of own means of JSC Uzbekneftegaz or funds raised by it.

6. Approve the Plan of measures for development of exploration works on oil and gas squares and fields, implementable Goskomgeologiya and JSC Uzbekneftgaz, according to appendix No. 6.

At the same time to assign on Goskomgeologiya and JSC Uzbekneftgaz responsibility for realization of the specified measures at the scheduled time.

7. Agree with Goskomgeologiya's proposals, the Ministries of Finance and the Ministries of investments and foreign trade directed to increase in investment appeal of geological industry, and also providing:

implementation of system of separation of subsoil plots, poorly studied from the point of view of geology, into blocks (areas) on the basis of international standards;

implementation of the requirements about annual payment for receipt of permission to right to use by the block (area) divided on the basis of international standards, for geological studying, considering the size of the block (area) and types of the minerals which are available on site, instead of one-time subscription bonus, and also about the size of annual minimum expenses on conducting exploration works;

online to Goskomgeologiya of permissions to right to use by poorly studied subsoil plots for the purpose of geological studying by the principle "addressed the first will receive issue the first" based on addresses of investors by means of the Single portal of interactive state services of the Republic of Uzbekistan;

issue of permissions to right to use by squares with high degree of study and potential of discovery of the fields for the purpose of geological studying, and also mining on the found fields based on results of the auctions held on electronic trade platform of "E-AUKSION".

These offers to provide in the bill of the Republic of Uzbekistan "About subsoil", developed in the new edition.

8. Establish procedure according to which:

in case of receipt in Goskomgeologiya of the request of the investor for receipt of permission to right to use by the subsoil plot which is not offered for auction this permission to right to use by this subsoil plot is offered for auction by means of electronic trade platform of "E-AUKSION" according to the procedure, established by the legislation.

9. Goskomgeologiya in three-months time, proceeding from priority tasks of expansion of mineral resources of the republic to develop and introduce the concept of perspective development of mining-and-geological industry of the country covering the five-year period with display of world market conjuncture and the advanced scientific and technical achievements in the Cabinet of Ministers.

10. Agree with offers of khokimiyat of the city of Tashkent, the Ministry of construction, the Ministry of Finance and Goskomgeologiya about:

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